State of Maryland Moves to Repeal Technology Tax

The controversial levy, which targets a wide range of computer services, would drive IT companies from the state, critics say.

The Maryland Senate voted April 4 to repeal a controversial 6 percent tax on computer services. If also approved by the Maryland House of Delegates, the vote would reverse a November decision to tax computer and data support services, custom programming, consulting and disaster recovery services.

The Maryland upper House's vote replaces the tax with a new levy on millionaires and a package of tax cuts.

"We understand and appreciate that difficult decisions must be made
in order to repeal the computer services sales tax. However, we believe
that the compromises offered in this legislation are the best options
for ensuring Maryland's technology economy," the Tech Council of
Maryland said in an April 4 letter to lawmakers.